PCG Creates Cost Savings for Global Medical Device Company
- Utilized Lean Six Sigma principles to identify and quantify opportunities.
- Improved distributor turns, reduced overall inventory, improved inventory tracking worldwide and revised policies and procedures.
- Identified the “quick win” items vs. long term plans.
- Implemented kaizens for quick wins (5-30 day implementation).
- Utilized standard project management methodology for programs > 30 days in duration.
5 Year NET EBIT Impact: $20MM
PCG helps with Procure-to-Pay business process management
Created strategic initiative for global firm to analyze procurement processes across multiple business units. Identified leveraged spending and working capital improvement opportunities such as payment timeframe variations against agreed upon terms with suppliers. Established clear metrics and hypotheses followed by deep portfolio analysis.
- Established standard processes and metrics.
- Developed hypotheses to test/analyze.
- Identified opportunities based on analysis
This initiative brought $60MM in working capital improvement in the AP area along with standardized metrics and roles to support ongoing analysis and ensure maintained gains. Additional opportunity portfolios provided to leadership illustrated clear strategic sourcing consolidation opportunities for redundant suppliers in the same categories.
Is your business experiencing a similar problem? Reach out to PCG today.